Expansions: BASF starts up HMD plant in France; SIIG/CP Chem jv to go ahead for polymer capacity expansion in Jubail

German chemicals firm BASF has announced the successful start-up of its new world-scale hexamethylenediamine (HMD) plant in Chalampé, France, construction of which began in 2022. The plant increases BASF’s annual HMD production capacity to 260,000 tonnes.

HMD is a precursor used in the production of PA 6.6 polymers and coatings raw materials. Among other applications, these products are used in the automotive industry as well as in the production of high-quality fibres.

The plant is an essential component of BASF’s strategic path forward in its polyamide (PA) 6.6 business in Europe. In addition to starting up the new HMD plant, the company is in the final stage of expanding its PA 6.6 production in Freiburg, Germany.

“This investment underlines BASF’s strong commitment to chemical production in Europe and our determination to support regional growth. It is yet another example of how we put our ‘Winning Ways’ strategy into action to create long-term value for our company and secure our future competitiveness in a volatile economic environment,” said Dr. Stephan Kothrade, member of the Board of Executive Directors of BASF.

“The successful completion of this investment project is a significant step towards our goal of being the leading supplier for HMD and the preferred partner for PA 6.6 in Europe,” said Dr. Ramkumar Dhruva, President of BASF’s Monomers division. “Through the new HMD production plant in Chalampé and the expanded PA 6.6 polymerisation in Freiburg, we are ideally positioned to supply our customers reliably with high-quality products.”

The economic and industrial platform in the Alsace region of France and the direct integration into the main raw material adiponitrile (ADN) provide an ideal setup for the production and supply of HMD. In addition to chemical production assets, BASF operates a R&D laboratory as well as corresponding infrastructure dedicated to PA6.6 research at the Chalampé site.

In other news, Saudi Industrial Investment Group (SIIG) says it has received approval from the Ministry of Energy to allocate additional feedstock to utilise the available capacity in its current assets and support the company’s plans to expand its production capabilities.

SIIG explained that additional ethane was allocated for the expansion of its 65%-owned subsidiary, Saudi Polymers Company (SPCo) in Jubail Industrial City.

This expansion is expected to ramp up the production of end products. SPCo is currently working on related engineering studies and designs for this expansion project. It is anticipated that the expansion will start up by the beginning of 2029.

SPCo is expected to benefit from a portion of this allocation before the actual expansion project is completed, as it currently has unutilized capacities.

SIIG also received an additional allocation of natural gasoline for its 50:50 joint ventures, Saudi Chevron Phillips and Jubail Chevron Phillips companies.

This should increase the overall production at the entire complex. The jvs are expected to start benefiting from this feed before the end of this year.

These additional allocations are expected to have a positive impact on SIIG’s financial results gradually over the next three years, as the additional feed becomes available. The impact may eventually exceed an estimated total of SAR470 million annually in net profit by the end of the expansion project and start-up in 2029, based on product price forecasts.

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